2020 Business Preliminary Past Paper

Question 1

Health is part of which industry sector?
a) Primary
b) Secondary
c) Tertiary
d) Quaternary

Answer 1

c) Tertiary - Services

Question 2

What is the main aim of a trade union?
a) Investigate anti-competitve behaviour by businesses
b) Promote industry by lobbying the government
c) Ensure all businesses comply with the industry standards
d) Improve working conditions and pay rates for employees

Answer 2

d - Improve working conditions and pay rates for employees is the main aim of a trade union

Question 3

A business orders only enough stock to meet weekly requirements. This is an example of which inventory management system?
a) First in First
b) Last in first out
c) Just in time
d) Periodic

Answer 3

c) Just in time - means no story costs

Question 4

The use of short-term debt finance by a business would best be used for the purchase of which of the following assets?
a) Stock
b) Buildings
c) Machinery
d) Motor Vehicles

Answer 4

a) Stock - short term debt is paid within 12 months and long term debt is paid from 5-30 years. It makes more sense to buy stock as this is only short term debt, within 12 months

Question 5

Which stage of the human resource cycle involves the promotion of an existing employee within a business?

a) Acquisition
b) Development
c) Maintainence
d) Separation

Answer 5

a) Acquisition -

Question 6

Which of the following is an example of an on-cost paid to employees
a) Commmission
b) Overtime
c) Salaries
d) Superannuation

Answer 6

d)

Question 7

Which is applied by the federal governement?
a) Fringe benefits tax
b) Land Tax
c) Payroll tax
d) Stamp duty

Answer 7

a) Fringe benefits tax - non cash employee benefits